Selling Products To WalMart
Learn what you need to do to get your product on the shelves
- Who to contact at Wal-mart?
- What Products are they Looking for?
- How to be come a Wal-mart Vendor?
Getting a product onto the shelves and selling to WalMart (www.walmart.com ) could be the biggest challenge and change in your business. With so much at stake, it's important for you to understand what it takes to get your product into Walmart stores and if you are really ready, before investing the time and money in this relationship with Wal-Mart.
Did you know that Wal-Mart is by far the world's largest retailer in the world and operates more than 5,260 stores in 27 countries outside of the United States? This spells tremendous opportunity for any producer of CPG (consumer product goods) interested in expanding their business in some of the world's fastest growing markets. Many small businesses view getting their products onto the shelves of big box retailers such as Wal-Mart as the holy grail of product success. Besides dramatically increasing a business’s profits and opening doors to other lucrative retail contracts, having your products on a big box retailer’s shelves gives consumers and other retailers the message that your company’s products are winners.
However, competition is fierce; in 2004, “about 10,000 new suppliers applied to become Wal-Mart vendors. Of those, only about 200, or 2%, were ultimately accepted” (Gwendolyn Bounds, “The Long Road to Wal-Mart Shelves”, The Wall Street Journal Online). The number of applicants has increased significantly since then, and making it increasingly more difficult to get into stores.
So how can your company be one of those few companies? The first thing you have to do is ensure that your product and your company will be attractive to a big box retailer.
Big box retailers are looking for companies that:
Big box retailers such as Wal-Mart don’t want to bother with products that are untried and unproven. For one thing, there are so many businesses competing to be suppliers that they don’t have to. In addition, “Wal-Mart doesn't like to account for more than 30% of a supplier's total business; if it did, and suddenly had to change an order based on shifting trends, it could sink the supplier,” says Gwendolyn Bounds in “The Long Road to Wal-Mart Shelves”). So having other retail accounts increases your chances of selling your product to walmart.
Wal-Mart and other big box buyers are looking for products that are new and different. There currently are so many product categories out there and so much duplication that there’s absolutely no incentive or desire for a big box buyer to commit to carrying another one. The ideal product for Wal-Mart is something different – that will still fit with the retailer’s current product lines.
Even if you can are able to get a buyer at Wal-Mart or other Big Box retailer interested in your product, having only one product to offer can kill a deal. Setting up a new supplier takes time and effort – so the potential supplier who can offer a complete line rather than a single product will always have an edge over products that do not.
If you want to be a Costco, Home Depot or Wal-Mart supplier, you’ve got to win over the buyer and show that you can overcome obstacles. Whether it's upgrading your packaging or changing your pricing you have to show that you’re willing to work with the retailer to make your product work inline with their thinking.
When your company and your products are ready to begin selling to walmart and other big box retaliers, the next step is meeting with a big box buyer and making the pitch. Getting a meeting, though, is a process in itself.
If you’re aiming to get your products on Wal-Mart shelves, you need to file an application to become a Wal-Mart supplier. Wal-Mart's website gives step-by-step instructions for preparing and submitting your Wal-Mart supplier application package. You’ll see that the procedure varies slightly depending on whether you hope to become a national supplier or part of their local purchase program. In either case, you must also meet requirements such as having your financial information listed with Dun & Bradstreet, have Universal Product Code (UPC) Identification Number(s), and have applicable liability and workers' compensation insurance.
We are here to assist you to become a Wal-Mart vendor. We try to make the process for becoming a Wal-Mart vendor, including getting you connected with other Walmart vendors and suppliers that can facilitate your efforts, more manageable.
Finding the right conduit can make all the difference. Our connections to other Wal-Mart vendors, suppliers, merchants and representatives of products and services in Northwest Arkansas will make your visits to the Wal-Mart home office more successful. We would also appreciate your feedback in this process. Give us a call or send us an email, and give us your input.
We are here help get your product on Walmart shelves and helping you become a Wal-Mart vendor. We try to make the process for becoming a Wal-Mart vendor, including getting you connected with other Walmart vendors and suppliers that can facilitate your efforts, more manageable.
Utilize our existing relationshps and connections with big-box retailers and network of over 5,000+ distribuotrs in the United States to get your product on store shelves. Sign up today!